Redline Agreement

A redline agreement is a type of contract in which one party agrees to make changes or additions to the document that the other party has provided. The term ‘redline’ comes from the practice of using a red pen to mark changes on a document.

Redline agreements are often used when two parties are negotiating the terms of a contract. For example, if Party A wants to add a new clause to the contract, they would provide Party B with a redlined version of the contract that includes the proposed change. Party B can then review the proposed change and decide whether or not to accept it.

If both parties agree to the change, they can sign and date the redlined agreement. If one party does not agree to the change, they can initial each disagreement next to the proposed change.